Who has retail power?
Porter’s 5 Forces model helps to explain market influences as retail undergoes tremendous upheaval.
To manage fierce competition, companies can boost their bargaining power if they:
- Differentiate their offerings
- Reflect in-demand consumer trends
- Invest in e-commerce for omnichannel agility
Also, as tech-driven supply chains grow in power, companies are establishing strategic partnerships to delight consumers with convenience and quality.
UPDATE: August 30, 2021
Amid market volatility, power continues to shift across global retail players.
This piece from March can be amended with market factors growing in influence like:
To increase supply chain control and access to products, Walmart chartered ships and Canadian Tire invested in a shipping port
Brands are investing in digital ads for marketing muscle as e-commerce gets more crowded
TikTok deserves a mention, as tech giants desire a piece of the e-commerce action
As workers embrace the Great Resignation, Walmart and Target invest in employees’ college degrees to navigate the labor shortage
Which force do you think is most powerful in retail today?